1st Decile

1
Anticipated Scenarios - continued
Condition X
Condition X
1st Decile
Condition X
2nd Decile
1st Decile
3rd Decile
Hospital 3
1st Decile
4th Decile
2nd Decile
5th Decile
Top Performance Threshold
3rd Decile
6th Decile
2nd Decile
4th Decile
7th Decile
5th Decile
8th Decile
3rd Decile
9th Decile
6th Decile
4th Decile
10th Decile
Hospital 3
7th Decile
5th Decile
8th Decile
9th Decile
6th Decile
10th Decile
Hospital 3
7th Decile
Payment Adjustment Threshold
8th Decile
9th Decile
10th Decile
Year One
Year Two
Year Three
Hospital 3

• Performance at 7th decile level in Year One and
  thus ineligible for a bonus payment.
• Average performance for all participants rises.
  In Years Two and Three, hospitals performance
  improves markedly, but falls short of eligibility
  for incentive payments.

Notes

• Average performance for all project participants
  is expected to improve each year. In addition,
  given the nature of the measures and expected
  levels of improvement generally, it is
  anticipated that the standard deviation around
  the mean will decrease in Years Two and Three,
  narrowing the distribution of scores.
• Due to performance improvements achieved by all
  versus the Payment Adjustment Threshold
  established in Year One, in these scenarios, no
  project participant would experience a Medicare
  payment reduction.